Explanatory Statement
Accounting Standard AASB 2015-6
Amendments to Australian Accounting Standards – Extending
Related Party Disclosures to Not-for-Profit Public Sector
Entities
March 2015
EXPLANATORY STATEMENT
Reasons for Issuing AASB 2015-6
This Standard makes amendments to AASB 124 Related Party Disclosures to extend the scope of that Standard to
include not-for-profit public sector entities.
AASB 124 does not presently apply to general purpose financial statements of not-for-profit public sector entities. The
AASB noted that the version of AASB 124 issued in December 2009 provides a more appropriate basis for application
by not-for-profit public sector entities than earlier versions of the Standard, as transactions between government-related
entities of the same jurisdiction are exempted partially from disclosure. Therefore, in furtherance of its policy of
promulgating transaction-neutral Standards to the extent feasible, the AASB is amending AASB 124 to require not-forprofit public sector entities to apply the Standard.
Main Features of AASB 2015-6
Main Requirements
The amendments extend the scope of AASB 124 to include application by not-for-profit public sector entities.
Implementation guidance is included to assist application of the Standard by not-for-profit public sector entities.
This Standard also makes related amendments to AASB 10 Consolidated Financial Statements and AASB 1049 Whole
of Government and General Government Sector Financial Reporting, and an editorial correction to AASB 124.
Application Date
This Standard applies to annual reporting periods beginning on or after 1 July 2016. Early application is permitted for
annual reporting periods beginning on or after 1 January 2005 but before 1 July 2016, except that the amendments to
AASB 10 may be applied early only as set out in that Standard.
Consultation Prior to Issuing this Standard
The Board issued Exposure Draft ED 214 Extending Related Party Disclosures to the Not-for-Profit Public Sector in
July 2011 for comment by 31 January 2012. In addition, public roundtables were conducted in Sydney, Melbourne and
Canberra with public sector constituents.
Seven submissions were received by the AASB in respect of the proposals in ED 214, including submissions from the
Australasian Council of Auditors-General and Heads of Treasuries Accounting and Reporting Advisory Committee.
There was general support for adopting the proposals in Australian Accounting Standards. The AASB considered the
comments it received in finalising AASB 2015-6.
A Regulation Impact Statement (RIS) has not been prepared in connection with the issue of AASB 2015-6 as the
amendments made do not have a substantial direct or indirect impact on business or competition, or are of a minor or
machinery nature.
AASB 2015-6
2
EXPLANATORY STATEMENT
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011
Accounting Standard AASB 2015-6
Amendments to Australian Accounting Standards – Extending Related Party Disclosures to Notfor-Profit Public Sector Entities
Overview of the Accounting Standard
This Standard makes amendments to AASB 124 Related Party Disclosures to extend the scope of that Standard to
include not-for-profit public sector entities. This Standard also makes related amendments to AASB 10 and
AASB 1049, and an editorial correction to AASB 124.
AASB 124 does not presently apply to general purpose financial statements of not-for-profit public sector entities. The
AASB noted that the version of AASB 124 issued in December 2009 provides a more appropriate basis for application
by not-for-profit public sector entities than earlier versions of the Standard, as transactions between government-related
entities of the same jurisdiction are exempted partially from disclosure. Therefore, in furtherance of its policy of
promulgating transaction-neutral Standards to the extent feasible, the AASB is amending AASB 124 to require not-forprofit public sector entities to apply the Standard.
Human Rights Implications
This Standard is issued by the AASB in furtherance of the objective of facilitating the Australian economy. It does not
diminish or limit any of the applicable human rights or freedoms, and thus does not raise any human rights issues.
Conclusion
This Standard is compatible with the human rights and freedoms recognised or declared in the international instruments
listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
AASB 2015-6
3
EXPLANATORY STATEMENT